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RULE §21.109Unlawful Inducement

(a) An advertisement may not state or imply anything offering or tending to offer a good, service, or other guarantee or contractual right of pecuniary value outside of the express terms of the policy offered by the advertisement.

  (1) This subsection does not prohibit, in connection with an accident and health insurance policy or health maintenance organization contract, the provision of health-related services or health-related information, or the disclosure in advertising of the availability of such additional services and information, to prospective policy or certificate holders, or prospective enrollees or contract holders. If there is a separate charge required to access such additional services or information, an advertisement referencing the services or information must disclose that fact.

  (2) In this subsection:

    (A) "Health-related services" are defined in accordance with the Insurance Code §541.058.

    (B) "Health-related information" is defined in accordance with the Insurance Code §541.058.

  (3) An advertisement referencing noncontractual health-related services or health-related information must disclose that such services or information are not a part of the policy, may be discontinued at any time and, as appropriate, may be subject to geographic availability.

(b) No insurer or agent may state or imply as an inducement to the purchase of insurance a guarantee of return of premium based upon the quality of its policy other than where such guarantee is required by law or stated within the policy of insurance offered.

(c) An advertisement may offer an incentive to inquire about a policy or obtain a quote provided that it includes a clear and conspicuous disclosure that no purchase is required in order to receive the incentive.

(d) No advertisement may state or imply any advantage, right, or preference which if granted or performed would be a violation of the public policy or any law of this state or of the United States of America.

(e) An advertisement may not state or imply any deviation in normal or usual cost that is not in fact legally allowable.

(f) An advertisement may not state or imply an advantage by purchase of insurance to be gained by an organization because of past or prospective donation to be made by an insurer, agent, or representative out of proceeds of purchase.

Source Note: The provisions of this §21.109 adopted to be effective February 1, 1981, 5 TexReg 3336; amended to be effective December 9, 2007, 32 TexReg 8830

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